Permira’s Dipan Patel sees today’s PE uncertainty as tomorrow’s vintage opportunity, if firms can buy smart, navigate AI disruption and unlock exits.
Could the current period of private equity uncertainty become one of its more rewarding investment vintages? Permira’s co-chief executive Dipan Patel argues that market dislocation can create precisely the conditions long-term investors seek: lower entry prices, less competition and greater scope to acquire businesses at attractive valuations. The historical parallels are the vintages that followed the dotcom bust and the global financial crisis, although today’s opportunity comes with its own complications. A prolonged slowdown in exits has left firms holding assets for longer, delayed distributions to LPs and made fundraising more difficult, while AI is reshaping the investment case for parts of the software sector. The industry’s accumulated stock of unsold assets has been likened to a “pig in a python”, underlining the challenge of converting paper valuations into realised returns. Whether the next vintage lives up to its promise will depend not simply on buying cheaper, but on selecting the right assets and ultimately delivering successful exits. Time for buyout firms to channel their inner “Indiana Jones” and prepare for the next adventure!
James is an experienced financial journalist and editor with over 20 years experience covering private markets and alternatives. He is host of the Clockwork CIO podcast.
